DCIT, NEW DELHI vs. M/S C J INTERNATIONAL HOTELS LTD., NEW DELHI

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ITA 4036/DEL/2016Status: DisposedITAT Delhi18 February 2019AY 2011-124 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the Supreme Court had not suspended the operation of the Delhi High Court's order, the jurisdictional High Court's decision must be followed. Therefore, the CIT(A)'s order was upheld.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition related to income from house property. The Assessing Officer made the addition despite a favorable High Court decision for the assessee, as the revenue had appealed to the Supreme Court.

What were the issues?

Whether the Annual Letting Value of a property is taxable as income from house property when the jurisdictional High Court has ruled in favor of the assessee, despite a pending appeal in the Supreme Court.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but relates to Income from House Property

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,

Before: SHRI N.K. BILLAIYA, & SMT BEENA A. PILLAI

For Respondent: Shri Mithun Shete, Sr. DR
Hearing: 14.02.2019Pronounced: 18.02.2019

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

1.

This appeal by the Revenue is preferred against the order of the ld. CIT(A) - 2, New Delhi dated 15.03.2016 pertaining to assessment year 2011-12.

2.

The solitary grievance of the Revenue is that the CIT(A) was not justified in deleting the addition made by the Assessing Officer on the issue of income from house property amounting to Rs. 6.96 crores by ignoring the fact that the Annual Letting Value of the property known as West Tower was taxable as income from house property.

3.

A perusal of the assessment order shows that this issue is no more res integra, as the Hon'ble High Court of Delhi has decided this issue in A.Y 2001-02 in favour of the assessee company. However, the Assessing Officer observes that since the revenue has not accepted the findings of the Hon'ble High Court and has appealed before the Hon'ble Supreme Court and the SLP admitted, therefore, the issue has not attained finality and accordingly, the Assessing Officer made the impugned addition.

4.

In our considered opinion, since the operation of the order of the Hon'ble High Court of Delhi has not been suspended by the Hon'ble Supreme Court, therefore, at the moment we have to follow the decision of the Hon'ble Jurisdictional High Court of Delhi. We find that the first appellate authority has also allowed the appeal of the assessee following the order of the Hon'ble High Court of Delhi. We, therefore, do not find any reason to interfere with the findings of the CIT(A),

5.

In the result, the appeal of the Revenue in is dismissed.

The order is pronounced in the open court on18.02.2019.

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